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Andrés Cester
CEO & Co-Founder
When measuring a company’s carbon footprint, most businesses focus on Scope 1, Scope 2, and Scope 3 emissions as defined by the Greenhouse Gas Protocol. However, a new dimension known as Scope 4 emissions is garnering attention. While not formally recognized in standard frameworks, Scope 4 represents the avoided emissions—emissions prevented by a company’s products, services, or operational strategies.
This article explores the concept of Scope 4 emissions, why it’s gaining traction, and how businesses might track and leverage these impacts in their sustainability narratives.
Scope 4 emissions (also called “avoided” or “counterfactual” emissions) refer to the greenhouse gases that would have been emitted if a more carbon-intensive product or service had been used instead. For instance, if an electric car replaces a traditional gasoline-powered vehicle, the difference in lifetime emissions could be categorized as avoided emissions.
Though not yet included in GHG Protocol or ISO standards, some forward-thinking companies and research institutions are using the term to highlight positive climate impacts.
Quantifying Scope 4 involves counterfactual scenarios—estimating the emissions that would have occurred without the product or service.
Typical approaches include:
Consider a wind turbine company that sells turbines to replace coal-based power. By estimating how much electricity the turbine will generate over its lifespan, comparing it to the emissions from coal power, and accounting for manufacturing and transport emissions, the company can present a net avoided emissions figure. This data helps the manufacturer market its solutions to utilities and governments seeking to reduce their carbon footprints, thereby enhancing business opportunities.
While not yet formalized, Scope 4 could evolve as stakeholder interest grows. Think tanks, NGOs, and private sector coalitions might push for more robust guidelines. If integrated into frameworks like the Science Based Targets initiative, Scope 4 could become a standardized method to highlight positive emissions handprints—the idea that corporations can leave a net benefit on the planet.
While Scope 4 emissions remain an emerging and sometimes debated concept, they spotlight the positive climate impact a company can exert through its products, services, and innovations. As businesses race to decarbonize, showcasing avoided emissions can serve as a powerful differentiator—provided these claims are transparent, verified, and free of exaggeration.
Whether Scope 4 becomes formally standardized or not, its emphasis on genuine net-benefit solutions is shaping the next frontier in corporate sustainability.
Andrés Cester
CEO & Co-Founder
About the author
Andrés Cester is the CEO of Manglai, a company he co-founded in 2023. Before embarking on this project, he was co-founder and co-CEO of Colvin, where he gained experience in leadership roles by combining his entrepreneurial vision with the management of multidisciplinary teams. He leads Manglai’s strategic direction by developing artificial intelligence-based solutions to help companies optimize their processes and reduce their environmental impact.
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